Suppose that in Mysore, the reserve-deposit ratio is res = 0.5 - 2i,where i is the nominal interest rate. The currency-deposit ratio is 0.2 and the monetary base equals 100. The real quantity of money demanded is given by the money demand function L(Y, i) = 0.5Y - 10i,where Y is real output. Currently, the real interest rate is 5% and the economy expects an inflation rate of 5%. The money supply equals
A. 200.
B. 300.
C. 240.
D. 400.
Answer: C
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Reducing business taxes or providing specific investment incentives can shift the demand for loanable funds curve
a. rightward, slow the growth of the capital stock, and improve the standard of living b. rightward, speed the growth of the capital stock, and improve the standard of living c. leftward, speed the growth of the capital stock, and reduce the standard of living d. rightward, speed the growth of the capital stock, and reduce the standard of living e. leftward, slow the growth of the capital stock, and reduce the standard of living
Refer to the information provided in Table 20.5 below to answer the question(s) that follow. Cashews are measured in bushels and tea is measured in pounds (lbs.)
Table 20.5
Refer to Table 20.5. If both countries specialize and trade with each other, Vietnam will export ________ and India will import ________.
A. tea; tea B. cashews; tea C. tea; cashews D. cashews; cashews
Profits
A) are a cost of doing business because they are payments to others. B) are not a cost of doing business because they are owed to resource owners. C) are not a cost of doing business because they are often zero or negative. D) are a cost of doing business because entrepreneurs would not incur the risk of starting a business if they didn't expect to earn profits.
Which presidential candidate made this pledge: "Read my lips: no new taxes"?
A. Gerald Ford (1974) B. Jimmy Carter (1976) C. Ronald Reagan (1980) D. George H.W. Bush (1988)